Uniform Supply accepted a $9,000, 90-day, 8% note from Tracy Janitorial on October 17. If the note
Question:
Uniform Supply accepted a $9,000, 90-day, 8% note from Tracy Janitorial on October 17. If the note is dishonored, but Uniform Supply intends to continue collection efforts, what entry should Uniform Supply make on January 15 of the next year? (Assume no reversing entries are made.) (Use 360 days a year.)
Multiple Choice
a. Debit Cash $9,180; credit Interest Revenue $30; credit Interest Receivable $150, credit Notes Receivable $9,000.
b. Debit Notes Receivable $9,000; debit Interest Receivable $180; credit Sales $9,180.
c. Debit Accounts Receivable $9,180; credit Interest Revenue $30; credit Interest Receivable $150, credit Notes Receivable $9,000.
d. Debit Cash $9,180; credit Notes Receivable $9,180.
e. Debit Cash $9,180; credit Interest Revenue $150; credit Interest Receivable $30, credit Notes Receivable $9,000.
Principles of Supply Chain Management A Balanced Approach
ISBN: 978-1285428314
4th edition
Authors: Joel D. Wisner, Keah-Choon Tan, G. Keong Leong